GK8 will insure digital assets stored in its cold vault up to $1 billion
GK8 will insure digital assets stored in its. cold vault up to $1 billion coverage for institutional customers. The firm which is the leading institutional-grade digital asset custody platform with DeFi, staking, NFT, trading, and tokenization support has teamed up with USI Insurance Services to broaden its insurance policy for institutional customers. This is done in an effort to encourage banks and other financial institutions to begin investing in cryptocurrencies.
With this collaboration, GK8's cryptocurrency custody solution is backed by the highest insurance coverage cap in the industry, providing institutional-grade security as well as financial safeguards.
Most custody technology vendors offer pooled insurance of $30-40 million to clients. Bitcoin and other digital assets kept by institutional customers in GK8's cold vault will be insured for up to $1 billion per client due to the partnership with USI. There is also institutional wallet assets coverage of up to $125 million per client against risk of theft due to attack on assets stored in the GK8 MPC vault.
The new insurance plan, according to GK8 co-founder and CEO Lior Lamesh, would incentivize new institutional players to confidently move into the crypto field and allow current clients to raise their holdings of digital assets.
The regulation-ready solution provided by GK8 features both a Cold Vault and an MPC Vault. The Cold Vault is linked with a high-performance MPC wallet used for high-frequency automatic transactions.
Additionally, GK8 facilitates the secure tokenization of conventional assets, offers all layer-1 blockchains compatible with the Ethereum Virtual Machine general support, and gives users immediate access to all layer-2 smart contracts on supported chains.
About USI :
The GK8's underwriting partner, USI Insurance Services is a leading insurance brokerage and consulting firm, with its main office in Valhalla, New York. In 2021, the business made close to $2 billion in revenue. Institutional investors have expressed a strong interest in utilizing digital assets. Property and casualty, employee benefits, personal risk management, program and retirement services are offered by USI to large risk management clients, middle market companies, smaller firms, and individuals.
CBW - External Analyst